Insider Selling: Texas Instruments (NASDAQ:TXN) Director Sells 6,065 Shares of Stock

Key Points

• Director Robert Sanchez sold 6,065 Texas Instruments shares for approximately $1.83 million, reducing his direct holdings by 21.92% to 21,600 shares.
• Texas Instruments reported strong quarterly results, with EPS of $2.62 and revenue of $6.05 billion, exceeding analyst estimates; revenue rose 27.7% year over year.
• The company raised its quarterly dividend from $1.42 to $1.52 per share, while the stock traded near its 52-week high and carried a valuation of roughly 40 times earnings.

Texas Instruments Incorporated (NASDAQ:TXN - Get Free Report) Director Robert Sanchez sold 6,065 shares of the stock in a transaction that occurred on Tuesday, October 27th. The stock was sold at an average price of $302.21, for a total value of $1,832,903.65. Following the completion of the transaction, the director directly owned 21,600 shares of the company's stock, valued at $6,527,736. This represents a 21.92% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink.

Texas Instruments Stock Up 1.0%

Shares of NASDAQ TXN traded up $3.11 during mid-day trading on Thursday, hitting $312.94. 5,631,214 shares of the stock traded hands, compared to its average volume of 7,598,907. The company has a market cap of $285.79 billion, a price-to-earnings ratio of 40.59, a PEG ratio of 1.43 and a beta of 1.35. The stock has a fifty day moving average price of $274.05 and a 200-day moving average price of $257.59. Texas Instruments Incorporated has a 52 week low of $152.73 and a 52 week high of $334.03. The company has a debt-to-equity ratio of 0.67, a quick ratio of 4.05 and a current ratio of 5.59.

Texas Instruments (NASDAQ:TXN - Get Free Report) last posted its quarterly earnings results on Wednesday, October 21st. The semiconductor company reported $2.62 earnings per share for the quarter, topping the consensus estimate of $2.40 by $0.22. The company had revenue of $6.05 billion for the quarter, compared to the consensus estimate of $5.94 billion. Texas Instruments had a return on equity of 40.51% and a net margin of 34.25%. The firm's quarterly revenue was up 27.7% compared to the same quarter last year. During the same quarter in the prior year, the business posted $1.48 EPS. Research analysts anticipate that Texas Instruments Incorporated will post 8.85 EPS for the current year.

Texas Instruments Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, November 10th. Shareholders of record on Friday, October 30th will be issued a dividend of $1.52 per share. This is an increase from Texas Instruments's previous quarterly dividend of $1.42. The ex-dividend date of this dividend is Friday, October 30th. This represents a $6.08 dividend on an annualized basis and a yield of 1.9%. Texas Instruments's payout ratio is 73.67%.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of TXN. Kraft Davis & Associates LLC grew its holdings in shares of Texas Instruments by 4.4% in the third quarter. Kraft Davis & Associates LLC now owns 827 shares of the semiconductor company's stock valued at $230,000 after purchasing an additional 35 shares during the period. Aviance Capital Partners LLC raised its position in shares of Texas Instruments by 1.0% during the 3rd quarter. Aviance Capital Partners LLC now owns 3,754 shares of the semiconductor company's stock valued at $1,052,000 after buying an additional 36 shares during the period. HBW Advisory Services LLC lifted its holdings in Texas Instruments by 2.2% in the first quarter. HBW Advisory Services LLC now owns 1,730 shares of the semiconductor company's stock valued at $336,000 after acquiring an additional 37 shares during the last quarter. Montz Harcus Wealth Management LLC grew its position in Texas Instruments by 2.9% in the first quarter. Montz Harcus Wealth Management LLC now owns 1,338 shares of the semiconductor company's stock worth $260,000 after acquiring an additional 38 shares during the period. Finally, Livforsakringsbolaget Skandia Omsesidigt raised its position in Texas Instruments by 0.6% in the first quarter. Livforsakringsbolaget Skandia Omsesidigt now owns 5,960 shares of the semiconductor company's stock valued at $1,157,000 after purchasing an additional 38 shares during the period. Institutional investors own 84.99% of the company's stock.

Analyst Upgrades and Downgrades

Several research firms have commented on TXN. KeyCorp increased their price objective on shares of Texas Instruments from $390.00 to $400.00 and gave the company an "overweight" rating in a report on Thursday, July 23rd. Rosenblatt Securities lifted their target price on Texas Instruments from $350.00 to $360.00 and gave the stock a "buy" rating in a report on Thursday, October 22nd. Arete Research decreased their target price on Texas Instruments from $405.00 to $381.00 and set a "buy" rating on the stock in a research report on Thursday, August 20th. Cantor Fitzgerald reiterated a "neutral" rating on shares of Texas Instruments in a research report on Tuesday, October 20th. Finally, Morgan Stanley increased their price target on Texas Instruments from $255.00 to $278.00 and gave the company an "underweight" rating in a research note on Thursday, October 22nd. One research analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating, twelve have issued a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $315.37.

Key Headlines Impacting Texas Instruments

Here are the key news stories impacting Texas Instruments this week:

• Positive Sentiment: Texas Instruments reported third-quarter revenue of $6.055 billion, up approximately 28% year over year, while adjusted earnings of $2.62 per share exceeded the $2.40 consensus estimate. Management also forecast fourth-quarter revenue of $5.80 billion to $6.30 billion and earnings of $2.45 to $2.79 per share, reinforcing expectations for continued demand across industrial, automotive and data-center markets. Earnings Beat Might Change Texas Instruments Stock Narrative
• Positive Sentiment: Gross margin rose to 64.2% from 57.4% a year earlier and 61.4% in the prior quarter, helped by stronger sales and factory utilization. Further margin expansion could support earnings growth and improve investor confidence in the semiconductor recovery. TXN's Gross Margin Crosses 64% in Q3
• Positive Sentiment: The company recently raised its quarterly dividend to $1.52, and its substantial free-cash-flow generation supports the case for continued shareholder returns, although payout sustainability remains an investor question. Texas Instruments Dividend Comparison
• Neutral Sentiment: ETF buying provided a technical demand signal, with 41 funds adding TXN on October 27 and approximately $37 million of purchases reported for the prior Monday. Such flows may support the stock but do not change its fundamentals. 41 ETFs Add Texas Instruments
• Negative Sentiment: At roughly 40 times earnings and near its 52-week high, TXN has limited room for disappointing results. DZ Bank upgraded the stock only from “sell” to “hold” with a $300 target, while Bernstein also maintained a Hold rating. DZ Bank Texas Instruments Rating
• Negative Sentiment: Weak guidance from automotive-chip peer NXP revived concerns about auto demand and pressured semiconductor stocks, including Texas Instruments. Analysts’ bullish average recommendations may also be less reliable because sell-side ratings often skew optimistic. Semiconductor Peer Guidance Concerns

Texas Instruments Company Profile

Texas Instruments Incorporated NASDAQ: TXN designs and manufactures analog and embedded semiconductor products used in industrial, automotive, personal electronics, communications equipment, and enterprise systems. Its analog products help manage power, sense and measure real-world signals, and support signal processing, while its embedded processing products provide computing and control functions within electronic systems.

The company offers a broad portfolio of semiconductors, including power-management devices, amplifiers, data converters, microcontrollers, processors, and connectivity products.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.